Response to the following problem:
Daba Company manufactures two products, Product F and Product G. The company expects to produce and sell 1,970 units of Product F and 2,700 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Data relating to the company's three activity cost pools are given below for the current year:
|
|
Total Activity
|
| Activity Cost Pool |
Total Cost |
Product F |
Product G |
Total |
| Machine setups |
$ |
36,570 |
164 |
setups |
101 |
setups |
265 |
setups |
| Purchase orders |
$ |
281,880 |
1,310 |
orders |
1,120 |
orders |
2,430 |
orders |
| General factory |
$ |
131,250 |
2,310 |
hours |
3,940 |
hours |
6,250 |
hours |
Required:
Using the activity-based costing approach, determine the overhead cost for each product line.